Last Updated on February 27, 2024
Big tech is an increasingly dominant force in the retail market. In recent years, Amazon has become a major player in the retail sales arena and now accounts for 37.8% of all e-commerce sales in the US. Others include Walmart at 6.3%, Apple at 3.9%, and eBay at 3.5%. Big companies, including Apple, Google, and Walmart, have clearly made significant investments in online retail platforms, and it’s paying off.
These companies use technology to reach new consumers, increase efficiency, and provide better customer experiences. Additionally, they invest heavily in artificial intelligence (AI) to automate processes and create personalized shopping experiences. As a result, these companies have gained considerable market share and influence over the retail industry.
Who are the Big Tech Players on the Global Stage?
- Apple Inc – $2.281 trillion market capitalization
- Microsoft –$1.869 trillion market capitalization
- Alphabet (Google’s parent company) – $1.198 trillion market capitalization
- Amazon –$911.93 billion market capitalization
- Tesla – $524.29 billion mark capitalization
- NVIDIA – $431.26 billion market capitalization
- TSMC – $413.04 billion market capitalization
- Tencent – $396.46 billion market capitalization
- Samsung – $305.33 billion market possession
- Meta Platforms, Inc. – $304.29 billion mark capitalization
These companies are involved in the retail sales market in various ways. For example, Apple and Microsoft have online stores where customers can purchase their products directly. In addition, through its subsidiary Google, Alphabet operates an online marketplace called Google Shopping, where customers can compare prices and purchase products from various retailers.
Amazon is a major player in the online retail market, offering a wide range of products from its inventory and third-party sellers. Meta Platforms, Inc (Facebook) also has a platform for businesses to sell products directly to customers through its marketplace. These tech companies also often provide the underlying technology and services that support the operations of other retailers.
What the Numbers Say: GAMAM Growth During 2022
During 2020 and 2021, Big Tech companies enjoyed surging profits. This was especially true for corporations like Meta Platforms, Inc and Amazon, with increased revenues of 20-45% year over year (Y-O-Y) during the first 9 months of 2020 & 2021, respectively. However, the current economic climate is driving uncertainty in the markets.
The global economy faces myriad crippling concerns, notably rising inflation and a potential recession. China’s stringent ‘Zero-Covid’ rules and regulations damaged the impressive growth of GAMAM corporations. These include Google, Amazon, Meta, Apple, and Microsoft during Q1 & Q2 of 2022.
The Death Knell for Meta Platforms, Inc.
Meta Platforms, Inc has been hammered in revenues, with an uptick of $200M in Q1, Q2, & Q3, 2022 vs the equivalent time during 2021. This downturn can be attributed to boosted investments in Metaverse prospects by Zuckerberg, and they’re unlikely to be recouped anytime soon.
Alphabet and Microsoft have performed better in the GAMAM sector. Analysis of their activity reveals noteworthy revenue increases of 13% & 14%, respectively. Surging demand for dynamic Cloud solutions has been a key factor in the performance of these Tech Titans. Alphabet has also seen continued growth in the Google Search segment, but YouTube ad revenue has decreased year-over-year.
Apple Retail Sales Decline Sharply In 2022
On the other hand, Apple, which released new iWatch & iPads in the first part of 2022 and brought its iPhone 14 products to the market at the end of the company’s fiscal year, has also experienced a sizeable decline. Consider that revenues spiked by 39% from 2020 through 2021.
But, in 2022, Apple Inc saw a massive downturn in consumer spending, potentially affected by concerns over financial restrictions as a result of steadily increasing energy costs. Overall, these factors led to an increase in revenue of just 6%.
With tech sector growth slowing down, GAMAM companies will likely start cutting costs, such as reducing their workforce. For example, after Twitter Inc (TWTR) released 50% of its workers to render the company profitable, Meta Platforms, Inc quickly followed in quick succession. On November 10 2022, Meta announced the firing of 11,000 employees, accounting for 13% of its workforce.
Deductions from Our Analysis
Based on the information above, we can deduce that Big Tech giants like Apple, Google, Amazon, et al. have become major players in the retail market. This is because these companies use technology and AI to improve efficiency and provide better customer experiences, leading to a gain in market share and influence over the retail industry.
The numbers indicate that Big Tech experienced strong growth during 2020 and 2021, but the current geopolitical climate is causing uncertainty in the market. Some Big Tech enterprises, such as Alphabet and Microsoft, have performed well in the market, but others, such as Meta Platforms and Apple, have experienced downturns in overall revenue growth.